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Key Takeaways

• Zoom Communications gave soft guidance as more employers move away from allowing workers to have hybrid work schedules.

• Founder and CEO Eric Yuan said the video conferencing provider faced "ongoing macro challenges and uncertainties."

• Zoom's fourth-quarter profit and sales exceeded forecasts.

Zoom Communications (ZM) shares sank 8% Tuesday, a day after the provider of remote video services gave a weak outlook as more employers are requiring their staff to return to the office instead of working remotely.

The company sees first-quarter fiscal 2026 revenue of $1.162 billion to $1.167 billion. Analysts surveyed by Visible Alpha were looking for $1.174 billion. For the full year, it anticipates revenue between $4.785 billion and $4.795 billion, while the Visible Alpha estimate was $4.798 billion.

Founder and CEO Eric Yuan said despite "ongoing macro challenges and uncertainties," Zoom is encouraged that its "value proposition and total cost of ownership are gaining traction in the market."

The outlook offset strong fourth-quarter 2025 results. The company posted adjusted earnings per share (EPS) of $1.41, with revenue rising 3% year-over-year to $1.18 billion. Both exceeded expectations.

Even with today's losses, shares of Zoom Communications remain 17% higher over the past year.

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